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EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

It was pretty depressing to see Ebay's latest attack on the sellers with the implementation of the new 40% seller fee increase.   An increase based on their latest version of "Seller performance standards."   I had contacted ebay dozens of times over the last two months trying to figure out what this was all about.   It was only 4 days ago that I was able to get concrete answers, after 2 months of conflicting information from ebay reps (by the way, if a rep answers the phone and they have an India accent, hang up, only the American Tech support has a real clue what is going on).   So as best I am able to determine, this is how things will be:

 

Those who sell a lot of items no longer have that high volume to help keep a low overall percentage defect rate because ebay has broken down all your sales into tiny categories (21 to be exact), each with it's own rating system (Each category has it's own 4 % penalty system).   There are also many categories that simply say "You don't have any peer benchmarks", even though I have many sales in those categories, basically I have not been rated by ebay because I have no peers in that category (what?).   Ebay has not been able to explain this, other than it being used to dilute high volume sales into 21 low volume categories where one or two defects will drive you right up into the 4% fee rate (The new Seller Performance standards), If you thought you were doing better, well, now Ebay will make sure you are not.   

 

Lets talk about what the defects actually are, this really made my day (a lot worse):

 

      If a buyer opens a not as described case and states they made a mistake and ordered the wrong item, you can contact ebay and have that case dismissed, BUT, that case still counts against you, even though you did absolutely nothing wrong and the case was closed in your favor.   

 

      If a buyer opens a return request for any reason and never returns the item or changes their mind and wants to keep it, that counts against you.

 

      If a buyer opens an item not received case and tracking shows it has been delivered, you can have the case closed by ebay in your favor, but it still counts against you.

 

    If an item is damaged by the shipper during shipping and you have insured the item, the shipper pays the insurance claim and the buyer then closes the case, it still counts against you.

 

   If a buyer opens a not as described case due to something missing (such as a power cord), even if they find the cord a few minutes later  and close the case, or you send them the cord and they close the case.   It still counts against you.

 

If an ebay rep tells you this rating system only applies to item not as described returns, and all other cases, if closed by ebay or the buyer, do not count against you, they are either from India tech support,  they don't have a clue about the new rules, or they are simply lying.    Everything case opened for any reason counts against you, whether it is your fault our not.   

 

And by the way, all this is designed to help you improve your seller performance (**bleep**!).   But, let's just have ebay be honest for once, you don't split our ratings up into 21 categories to help our performance, you do that to drive our below standard ratings up to increase our fees.     The less items sold in a category simply means one or two opened cases create a 4% fee increase for ebay.     

 

And what will ebay do if you continue to be at the 40% penalty rate in a category (poor performance standards)?  NO ONE AT EBAY HAS A CLUE!

 

It would be great if an ebay rep reviewed all this information and stated definitively what is and what is not correct in this post, because this entire message is derived from two months of calling ebay several times a week.   Every fact I have posted was contradicted by ebay reps more than once until the 4 days ago, basically making it absolutely impossible for me to adequately prepare for the changes (the changes by the way are not derived from October 1st onward, they are from this month (on the 20th), September ratings are what October is using, even though ebay was only able to explain everything accurately starting from the 16th of September (not months ago as they stated, but 4 DAYS before the rating system started!).

 

 

   

 

Message 1 of 69
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68 REPLIES 68

Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST


@adickson wrote:

The 10 defect statement you made is apparently incorrect, I have one category with 8 defects and I am being rated at a 4% penalty in that category, not rated as exempt because it is less than 10.


Are you over 1%?

Message 16 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

Yes, the fees stay the same as long as you are no higher than 1% defect rate in every one of the 21 categories.   Any category above that causes a fee increase for that specific category (not any of the others that are no higher than 1%, at least that is what I have been told so far).   

Message 17 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

Here is a fact to make you furious.   Each case that is opened, correct or not, solved immeditately or not, generates a $200 penalty (from the increase in ebay fees in that category) for a high volume seller like myself  for EACH month that it stays on my account, which is 3 months.  If a buyer opens a case for a $15 item that they did not receive even though tracking shows it has been delivered, that mistake by the buyer costs me $600 over three months (in that high volume category).   I can confidently say this because of all the cases that have been opened in all these categories of which I am being rated on.   Cases that are simple questions or items never returned or cases closed in my favor, all count against me and all guarantee that the fees in my high volume categories will ALWAYS have a 40% fee increase.    Each case incrementally increases my penalty rate to the point where it is maxed out.   At least the cases for me fall off after 3 months, the poor low volume sellers are stuck with the penalty automatically for a year (you have to sell over 400 items in three months to become a high volume seller).  

Message 18 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST


@adickson wrote:

The 10 defect statement you made is apparently incorrect, I have one category with 8 defects and I am being rated at a 4% penalty in that category, not rated as exempt because it is less than 10.


But your own post said that the penalties did not start until Oct 1 so how could that be?

Message 19 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST


@itsjustasprain wrote:

@richard1rst wrote:

 

I suggest that based on those exemptions alone the only people who are going to be penalized are those who are doing such a horribly lousy job that they probably should be in some other line of work in the first place,.


Not to mention the freakout title reading '40% SELLING PENALTIES' which it isnt.

 

Its a 40% INCREASE on the original 10% fee. Its a difference of 4% of the total - from 10% to 14% of the sale. Its not a 40% fee on whatever you take in.


I'ts an increase of 4% on the selling price (and shipping) which actually IS a 40% increase.

Reality is the leading cause of stress.
Message 20 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

They start October 1st, but the data for October 1st is derived from September, they already have October's penalty rate locked in for the month.   But, perhaps we will actually see all the penalties become active October 1st and the note "you don't have any peers in the category" will go away and the penalty rate will appear for each category.   

Message 21 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

@adickson

 

Just so I understand the short take away of your post. If a seller doesn't have defects, cases or out of stock issues they can ignore your post or no?

The truth has few friends but many enemies.
No one is perfect, though a mirror and the right clothes may make some think otherwise.
Message 22 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

All the examples you gave in your original statement does NOT constitute a defect.  It is very important to understand the difference between an actual defect and the service metrics.  They are different and the distinction is important to understanding this Service Metrics process.

 

A defect in regards to a Request for return by a buyer is ONLY created if the Request gets escalated to Ebay for their intervention.  If the claim is ruled in favor of the buyer, then the seller is dinged for a defect for not resolving the claim before being escalated to Ebay.  It does not matter if it is a BR, SNAD or INR.  An unresolved escalated request will be a defect.

 

With one exception.  ONLY sellers with a No Return policy can deny a Request for return if it is filed as a BR.  No other return policy allows for this.  ALL other types of return policies available on Ebay requires that the seller WILL honor a BR request.

 

For the Service Metrics, it is just the mere fact that a SNAD gets opened that counts in the metrics.  The outcome or reason does not matter.  The SNAD does NOT have to of caused a Defect.  It is just the fact it was opened that matters for the Service Metrics.

 

There is an important distinction here and we need to understand the difference.  More confusion is caused by not using words that apply as defined by Ebay.  While the word DEFECT may mean something else to you, what is important here is what it means to Ebay.  They often have different definitions of certain words than others may have.  So to minimize confusiont it is best to use the words as Ebay intends them to be used, not how we want to define them.

 

Ebay is being honest about how this new policy is structured.  We just need to wrap our heads around it.  While I am completely and utterly against this new policy, it is still Ebay's site and they write the rules in which we must abide by if we are going to sell here.  Now there are details of this program that Ebay is not sharing and that is of great concern.  They are not sharing their metric formula on how these peer groups are formed and the details behind them.

 

I do understand that they can not provide us with private account information, nor should Ebay EVER do that, but there is most likely a way they can be more forthcoming about how this is arrived at to make it more transparent without breaching privacy.

 

I see all kinds of problems with this policy.  But to me the most important one is the company in charge of enforcing this policy, writing this policy and designing the metrics in which this policy is based on is the ONLY company that will actually get a financial reward for how it is applied.  In my mind, this is a clear and utter conflict of interest.

 

But for now, we all must live with this.  And everyone needs to be clear on this.  It is NOT going to affect a whole lot of sellers.  

 

It is important to read, re-read and digest the link below.  Don't assume you know what it says, read it carefully and a few times until you feel you understand what it is trying to say to you.  The best defense is an offense.  So the better you understand what this policy is really about and how it is applied, the better off you are.  This policy will NOT hit small sellers as much as it will medium and up sizes.  Know the policy and understand the difference in word definitions is your best way to stay above the fray.

 

https://www.ebay.com/help/policies/selling-policies/seller-performance-policy/service-metrics-policy...


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 23 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST


@itsjustasprain wrote:

@richard1rst wrote:

 

I suggest that based on those exemptions alone the only people who are going to be penalized are those who are doing such a horribly lousy job that they probably should be in some other line of work in the first place,.


Not to mention the freakout title reading '40% SELLING PENALTIES' which it isnt.

 

Its a 40% INCREASE on the original 10% fee. Its a difference of 4% of the total - from 10% to 14% of the sale. Its not a 40% fee on whatever you take in.


@itsjustasprain

@pargran3

@castlemagicmemories

 

Let's look at this a bit differently to see if it makes better sense to all of us.  Because make no mistake this is a 40% increase on FVFs.  Certainly Ebay is saying it is a 4% increase because it doesn't look as harsh as it is in reality.  And as Ebay explains it with the 10% current fee plus the 4% penalty, that equals 14%, which on the face of it is certainly correct.  But lets look at this in a different way.

 

Let's take a $100 sale.

 

FVF on $100 @ 10% is $10, that is easy enough

FVF on $100 @ 14% is $14, again easy enough

 

So if your normal fee is $10 on that $100 sale and my FVF for the penalty is going to increase it by 4%, that would mean that the FVF should be $10.40.  [$10 x 4% = 0.40].  Oh wait that doesn't work.  The FVF you would be paying in the penalty phase would NOT be 4% more on your FVF that you are use to paying.

 

But if you take that $10 on the $100 sale and you have to pay the additional $4 on it because you are in the penalty, that makes $14 in FVFs you will have to pay.  $4.00 divided by the $10.00 you would normally pay is 40%.  [4% divided by 10% = 40%]

 

So while they are changing the FVF from 10% to 14% it is NOT costing you 4% more, it is costing you 40% more in FVFs over what you would normally pay if you were not in the penalty phase of this policy.

 

If Ebay were to add a TRUE 4% increase on the FVF, then 10% times 4% equals 10.4%.

 

But 10% times 40% = 14%

 


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 24 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

@mam98031

 

And don't forget those categories that got that little FVF increase with the Fall Seller Update. Normal went from 10% to 12% so if you then add on the extra 4% that is going to make it impossible to sell in the categories they did this to if you get dragged into the extra percentage thing.

Message 25 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST


@readabouthorses wrote:

@mam98031

 

And don't forget those categories that got that little FVF increase with the Fall Seller Update. Normal went from 10% to 12% so if you then add on the extra 4% that is going to make it impossible to sell in the categories they did this to if you get dragged into the extra percentage thing.


Valid point.  But I've just been trying to keep it simple.  It is easier for to understand using the 10% as an example.  But you are absolutely right, some sellers have higher than 10% normal FVFs and some have lower ones.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 26 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

It's hell waiting for the ebay ax to fall based on things we don't fully understand. I am so sorry for the "small" sellers, and the "big" volume sellers who did everything right, marched right along with continued loyalty and enthusiasm. Ebay has lost its mind. It breaks things that were working just fine. Greed bay. Where does it stop ?? Bend or break. Go broke and break spiritually and physically. Horrific.
Message 27 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST

With 50% FVF's I will have to stop selling.

Message 28 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST


@bosmingfarg wrote:
It's hell waiting for the ebay ax to fall based on things we don't fully understand. I am so sorry for the "small" sellers, and the "big" volume sellers who did everything right, marched right along with continued loyalty and enthusiasm. Ebay has lost its mind. It breaks things that were working just fine. Greed bay. Where does it stop ?? Bend or break. Go broke and break spiritually and physically. Horrific.

I think if you read the link I provided a couple posts back, you will see that it is NOT the Small sellers that are going to be largely affected by this.  They won't qualify to be in the metrics in the first place.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 29 of 69
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Re: EBAY 40% SELLING PENALTIES STARTING OCTOBER 1ST


@buyselljack2016 wrote:

With 50% FVF's I will have to stop selling.


WAIT, where the heck are you getting that.  It is NOT a 50% fee of ANY kind.

 

A $100 sale at 10% is a $10 FVF

A $100 sale at 14% is a $14 FVF

 

No where near $50


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 30 of 69
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